Romeo Power Inc (RMO) stock soared on Tuesday, up by nearly 60% as of the close. The reason investors are so excited is that the company said it has reached a long-term supply agreement with PACCAR for battery electric vehicles.

PACCAR is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. Under the agreement, Romeo Power will be a battery supplier for Peterbilt 579 and 520 BEVs in the United States and Canada through 2025. The start of production is anticipated to begin after 2021.

RMO shares have continued to fall since the middle of last month. The trading volume was up by 21 times its 3-month average following the news. Technically speaking, if this stock can consolidate above the current area for a period of time, it has a chance to rise further.

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